Asked by Christine Marie on Jul 26, 2024
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An investment centre has the highest level of responsibility from a performance management perspective.
Investment Centre
A segment or area of a business responsible for both its revenue and its investments.
Residual Income
The amount of income that exceeds the minimum rate of return or hurdle rate, often used in performance measurement.
Operating Assets
Assets that are used for the core operations of a business, necessary for creating goods or services to be sold.
- Recognize the distinction between profit centers, investment centers, and cost centers.
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Learning Objectives
- Recognize the distinction between profit centers, investment centers, and cost centers.
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